The Secretary of State for Business, Energy And Industrial Strategy v Selby & Ors [2021] EWHC 3261 (Ch) (08 December 2021)

The Secretary of State for Business, Energy And Industrial Strategy v Selby & Ors [2021] EWHC 3261 (Ch) (08 December 2021)

The defendants caused or allowed X E Solutions Ltd to participate in transactions connected with fraudulent evasion of VAT, failed to exercise proper due diligence, and either knew or should have known about the fraudulent nature of the transactions, rendering them unfit to be concerned in the management of a company under the Company Directors Disqualification Act 1986.

Citation
[2021] EWHC 3261 (Ch)
Parties
Claimant: THE SECRETARY OF STATE FOR BUSINESS, ENERGY AND INDUSTRIAL STRATEGY; Defendant: DAVID IAN SELBY; Defendant: AL SAYED; Defendant: TAHIR AWAN; Defendant: STEPHEN JAMES BAMFORD
Jurisdiction
England and Wales
Judgment Date
08 December 2021
Procedural Posture
Director Disqualification Proceedings / Final Judgment
Outcome
disqualification orders made against all defendants
Legal Topics
Director Disqualification, MTIC Fraud, Shadow/director Liability, VAT Fraud, Non Executive Director Duties
Company Law Insolvency Law Tax Law Director Disqualification MTIC Fraud Shadow/director Liability VAT Fraud Non Executive Director Duties

Case Brief

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Parties

THE SECRETARY OF STATE FOR BUSINESS, ENERGY AND INDUSTRIAL STRATEGY

Claimant

DAVID IAN SELBY

Defendant

AL SAYED

Defendant

TAHIR AWAN

Defendant

STEPHEN JAMES BAMFORD

Defendant

Procedural Posture

Director Disqualification Proceedings / Final Judgment

Legal Issues

  1. 1 Whether the defendants caused or allowed the company to participate in transactions connected with fraudulent evasion of VAT
  2. 2 Whether the defendants knew or should have known about the fraudulent nature of the transactions
  3. 3 Whether the conduct of the defendants made them unfit to be concerned in the management of a company under the Company Directors Disqualification Act 1986

Ratio Decidendi

The defendants caused or allowed X E Solutions Ltd to participate in transactions connected with fraudulent evasion of VAT, failed to exercise proper due diligence, and either knew or should have known about the fraudulent nature of the transactions, rendering them unfit to be concerned in the management of a company under the Company Directors Disqualification Act 1986.

Court Disposition

disqualification orders made against all defendants

Orders

  • Disqualification orders against David Ian Selby, Al Sayed, Tahir Awan, and Stephen James Bamford for periods determined by their knowledge and involvement in MTIC fraud
  • Defendants prohibited from acting as directors or being concerned in the management of any company for specified periods